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Board approves urban redevelopment designation for 4380 Memorial Drive and authorizes short-term financing; PNC chosen as TAN lender
Summary
The Board of Commissioners designated 4380 Memorial Drive as an urban redevelopment area and approved an urban-redevelopment plan to acquire the property; the board also authorized tax anticipation notes to provide short-term financing and accepted PNC Bank's bid for the TANs subject to conditions and recusal.
The DeKalb County Board of Commissioners on Tuesday designated the parcel at 4380 Memorial Drive in Decatur as an urban redevelopment area and adopted an urban redevelopment plan that authorizes the county to acquire the property. Commissioners also authorized short-term tax anticipation notes (TANs) to fund county capital and water/sewer cash needs, and awarded the TANs to PNC Bank after a public request-for-proposal process.
Tom Lott, outside counsel to the county, described the two-step request as "two preliminary items" needed before seeking Urban Redevelopment Agency authority to issue revenue bonds for acquisition. "The first resolution .. to designate the area as an urban redevelopment area," he said, and the second is an urban redevelopment plan that, at this stage, contemplates acquiring the property and leaves future redevelopment options to the board.
Commissioners voted to approve the URA designation and the redevelopment plan during a special called session. The board then approved issuance of tax anticipation notes to obtain temporary loans for county cash flow needs; county financial advisors and PFM presented the results of a bidding process. The advisers said the county issued an RFP to multiple banks and received bids from six institutions. PNC Bank submitted the winning bids and staff recommended awarding both the general-government TAN and the water/sewer TAN to PNC.
PFM reported the TANs will mature in two tranches: the water/sewer TAN will mature Sept. 1, 2025, to be repaid after issuance of water/sewer bonds, and the general-government TAN will mature Dec. 16, 2025. PFM said the stated interest rates submitted were in the mid-3% range and that the all-in cost, including issuance expenses, produced an accepted all-in TIC. The record shows one commissioner recused from the TAN vote; Commissioner Robert Patrick disclosed a banking relationship with PNC and recused from the vote on at least one TAN.
Why it matters: Acquiring 4380 Memorial Drive, which houses county offices including the tax commissioner and elections functions, would allow the county to control a strategically located property and stop paying external rent. The TANs provide temporary liquidity to fund current capital and cash requirements while longer-term bond financing is prepared.
The board approved the URA designation and redevelopment plan for 4380 Memorial Drive and authorized the TANs with the reported bid awards; county staff said the Urban Redevelopment Agency will return next week to finalize the revenue-bond financing for the purchase.
